diff --git a/news/changelog-1.7.md b/news/changelog-1.7.md
index daec9d8d52c..831514bbdcc 100644
--- a/news/changelog-1.7.md
+++ b/news/changelog-1.7.md
@@ -24,4 +24,5 @@ All changes included in 1.7:
 
 ## Other Fixes and Improvements
 
+- ([#11441](https://github.com/quarto-dev/quarto-cli/issues/11441)): Don't add newlines around shortcodes during processing.
 - ([#11643](https://github.com/quarto-dev/quarto-cli/issues/11643)): Improve highlighting of nested code block inside markdown code block, i.e. using ` ```{{python}} ` or ` ```python ` inside ` ````markdown` fenced code block.
diff --git a/src/core/handlers/base.ts b/src/core/handlers/base.ts
index 9cbb1593e08..4792e177c9c 100644
--- a/src/core/handlers/base.ts
+++ b/src/core/handlers/base.ts
@@ -405,9 +405,7 @@ export async function expandIncludes(
   const newCells: MappedString[] = [];
   for (let i = 0; i < mdCells.length; ++i) {
     const cell = mdCells[i];
-    newCells.push(
-      i === 0 ? cell.sourceVerbatim : mappedConcat(["\n", cell.sourceVerbatim]),
-    );
+    newCells.push(cell.sourceVerbatim);
   }
 
   await processMarkdownIncludes(newCells, options, filename);
@@ -437,9 +435,7 @@ export async function handleLanguageCells(
 
   for (let i = 0; i < mdCells.length; ++i) {
     const cell = mdCells[i];
-    newCells.push(
-      i === 0 ? cell.sourceVerbatim : mappedConcat(["\n", cell.sourceVerbatim]),
-    );
+    newCells.push(cell.sourceVerbatim);
     if (
       cell.cell_type === "raw" ||
       cell.cell_type === "markdown"
@@ -483,7 +479,6 @@ export async function handleLanguageCells(
           (innerLanguageHandler.stage !== "any" &&
             innerLanguageHandler.stage !== options.stage)
         ) { // we're in the wrong stage, so we don't actually do anything
-          newCells[cell.index] = mappedConcat([newCells[cell.index], "\n"]);
           continue;
         }
         if (
@@ -492,7 +487,6 @@ export async function handleLanguageCells(
         ) {
           // if no handler is present (or a directive was included for something
           // that responds to cells instead), we're a no-op
-          newCells[cell.index] = mappedConcat([newCells[cell.index], "\n"]);
           continue;
         }
         if (innerLanguageHandler.directive === undefined) {
diff --git a/src/core/lib/break-quarto-md.ts b/src/core/lib/break-quarto-md.ts
index fdf46f8f843..0f517ad675b 100644
--- a/src/core/lib/break-quarto-md.ts
+++ b/src/core/lib/break-quarto-md.ts
@@ -76,7 +76,6 @@ export async function breakQuartoMd(
         mappedChunks,
         fileName,
       );
-
       const makeCellType = () => {
         if (cell_type === "code") {
           return { language };
@@ -148,13 +147,7 @@ export async function breakQuartoMd(
         // directives only carry tag source in sourceVerbatim, analogously to code
         cell.source = mappedString(src, mappedChunks.slice(1, -1), fileName);
       }
-      // if the source is empty then don't add it
-      if (
-        mdTrimEmptyLines(lines(cell.sourceVerbatim.value)).length > 0 ||
-        cell.options !== undefined
-      ) {
-        nb.cells.push(cell);
-      }
+      nb.cells.push(cell);
 
       lineBuffer.splice(0, lineBuffer.length);
     }
@@ -254,27 +247,3 @@ export async function breakQuartoMd(
 
   return nb;
 }
-
-function mdTrimEmptyLines(lines: string[]) {
-  // trim leading lines
-  const firstNonEmpty = lines.findIndex((line) => line.trim().length > 0);
-  if (firstNonEmpty === -1) {
-    return [];
-  }
-  lines = lines.slice(firstNonEmpty);
-
-  // trim trailing lines
-  let lastNonEmpty = -1;
-  for (let i = lines.length - 1; i >= 0; i--) {
-    if (lines[i].trim().length > 0) {
-      lastNonEmpty = i;
-      break;
-    }
-  }
-
-  if (lastNonEmpty > -1) {
-    lines = lines.slice(0, lastNonEmpty + 1);
-  }
-
-  return lines;
-}
diff --git a/src/resources/pandoc/datadir/readqmd.lua b/src/resources/pandoc/datadir/readqmd.lua
index 2e75fc90b88..0026783dddb 100644
--- a/src/resources/pandoc/datadir/readqmd.lua
+++ b/src/resources/pandoc/datadir/readqmd.lua
@@ -126,6 +126,7 @@ local function urldecode(url)
 end
 
 local function readqmd(txt, opts)
+  local tags
   txt = md_fenced_div.attempt_to_fix_fenced_div(txt)
   txt, tags = escape_invalid_tags(txt)
   txt = md_shortcode.parse_md_shortcode(txt)
diff --git a/tests/docs/smoke-all/2024/11/14/issue-11441.qmd b/tests/docs/smoke-all/2024/11/14/issue-11441.qmd
new file mode 100644
index 00000000000..e6747003fc0
--- /dev/null
+++ b/tests/docs/smoke-all/2024/11/14/issue-11441.qmd
@@ -0,0 +1,14 @@
+---
+format: html
+hello: world
+_quarto:
+  tests:
+    html:
+      ensureHtmlElements:
+        - []
+        - ["main p:nth-child(3)"]
+---
+
+1
+{{< meta hello >}}
+3
diff --git a/tests/docs/smoke-all/lightbox/addtl/example.qmd b/tests/docs/smoke-all/lightbox/addtl/example.qmd
index d6514bfc42a..605914672f2 100644
--- a/tests/docs/smoke-all/lightbox/addtl/example.qmd
+++ b/tests/docs/smoke-all/lightbox/addtl/example.qmd
@@ -8,7 +8,6 @@ _quarto:
         - [".glightbox-desc.lightbox-desc-1",".glightbox-desc.lightbox-desc-5",".glightbox-desc.lightbox-desc-10", "a[data-gallery='elsewhere']"]
       ensureFileRegexMatches:
         - ['title="Figure&nbsp;1', "Chilmark has a reputation as having some of the best beaches on Martha’s Vineyard."]
-
 ---
 
 ## Chilmark
@@ -73,6 +72,7 @@ plot(mtcars)
 ```
 
 It is possible to create several plots, and group them in a lightbox gallery. Use list in YAML for options when you have several plots, on per plot.
+
 ```{r}
 #| fig-cap: 
 #|   - Caption for first plot
diff --git a/tests/unit/break-quarto-md/break-quarto-md.test.ts b/tests/unit/break-quarto-md/break-quarto-md.test.ts
index 09aa5f39849..2e2a8ee1db3 100644
--- a/tests/unit/break-quarto-md/break-quarto-md.test.ts
+++ b/tests/unit/break-quarto-md/break-quarto-md.test.ts
@@ -19,7 +19,7 @@ unitTest("break-quarto-md - empty code cells", async () => {
   );
 
   const result = await breakQuartoMd(qmd);
-  assert(result.cells.length === 9);
+  assert(result.cells.length === 10);
 });
 
 unitTest("break-quarto-md - indented code cells", async () => {